The literature suggests that competitive forces should be an important element in improving enterprise performance in transition economies, especially when combined with private ownership. However, empirical evidence on these issues for Russia has as yet not been convincing. Our findings are consistent with the literature in being unable to identify clear differences in performance between insider- and outsider-owned firms. However, we do find evidence that competitive pressures influence qualitative indicators of managerial activity, including deep restructuring and investment intentions.
